June 2016 - Banco Macro

October 2016
Investor Relations
Reconquista 314 3rd. floor (1041) CABA - Argentina
Tel:(5411) 5222 6682
[email protected] – www.ri-macro.com.ar
Company Representatives
Jorge Scarinci, CFA
Finance & IR Manager
Ines Lanusse
Head of Investor Relations
Disclaimer
The information contained in this presentation is confidential and has been prepared solely for informational purposes.
This presentation contains forward-looking statements which are based largely on our current beliefs, expectations and
projections about future events and financial trends affecting our business. Many important factors could cause our
actual results to differ substantially from those anticipated in our forward-looking statements among other things:
inflation; changes in interest rates and the cost of deposits; government regulation; adverse legal or regulatory disputes
or proceedings; credit and other risks of lending, such as increases in defaults by borrowers; fluctuations and declines in
the value of Argentine public debt; competition in banking, financial services; deterioration in regional and national
business and economic conditions in Argentina; and fluctuations in the exchange rate of the peso. Banco Macro financial
results presented as of June 30, 2016 are stated in accordance with Central Bank Rules.
2
Agenda
Macroeconomic Information
Page 05
Investment Highlights
Page 08
Financial Scenario
Page 10
BMA Business Overview
Page 13
BMA Financial Performance
Page 26
Appendix
Page 36
3
Agenda
Macroeconomic Information
Page 05
Investment Highlights
Page 08
Financial Scenario
Page 10
BMA Business Overview
Page 13
BMA Financial Performance
Page 26
Appendix
Page 36
4
Macroeconomic Information
Historical and Projected Trade Balance
Historical and Projected Real FX and Interest Rates
90
15
17
10
48
5
5
3
1.8
(38)
1%
0
(%)
(Billion USD)
(Billion USD)
10
-1%
-2%
-5
-5%
-10
-15
(80)
(4)
-20
2008
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016* 2017*
Exports
Imports
Balance
2009
2010
Exchange Rate
2011
2012
2013
2014
Private Badlar Rate
2015 2016* 2017*
Lending Rate
Real Salary
Historical and Projected GDP Growth
Historical and Projected Debt to GDP
15
70.8
70
61.4
60
(%)
10
55.6
50.2
49.2
50
42.7
35.4
40
37.4
42.4
36.6
52.6
38.1
5
(%)
80
30
8.0
10.1
9.0
6.0
4.1
0
-1.0
-5
20
-10
10
0
2006
2007
Source: BMA /BCRA
Note:
*BMA Estimates
2008
2009
2010
2011
2012
2013
2014
2015
2016* 2017*
3.0
2.5
2.4
-2.5
-1.6
-5.9
-15
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*2017*
5
Macroeconomic Information
Historical and Projected Tax Balance
4
2
0
22
-2
-4
16
-6
-8
10
-10
2006
2007
2008
2009
Total Income/ GDP
2010
2011
2012
2013
Total Expenses/ GDP
2014
2015
18
Fiscal Result/ GDP
45
14.8
41
40
14
38
35
12
30
9.3
10
(%)
(USD/PS)
2017*
Historical and Projected Inflation
16.8
16
2016*
Primary Result/ GDP
Historical and Projected Average Nominal FX
8.1
8
3.9
4.1
4.6
5.5
28
25
20
6
4
Primary & Fiscal Result/ GDP (%)
Income Expenses/ GDP (%)
28
15
25
19
22
23
21
10
5
2
0
0
2010
Source: BMA /BCRA
Note:
*BMA Estimates
2011
2012
2013
2014
2015
2016*
2017*
2010
2011
2012
2013
2014
2015
2016*
2017*
6
Agenda
Macroeconomic Information
Page 05
Investment Highlights
Page 08
Financial Scenario
Page 10
BMA Business Overview
Page 13
BMA Financial Performance
Page 26
Appendix
Page 36
7
Investment Highlights
8
Agenda
Macroeconomic Information
Page 05
Investment Highlights
Page 08
Financial Scenario
Page 10
BMA Business Overview
Page 13
BMA Financial Performance
Page 26
Appendix
Page 36
9
Financial System – Loan Penetration
Average Loan Growth Rates (YoY)1
Avg
2003
∆:
(34%)
Avg
2004
∆:
8%
Avg
2005
∆:
33%
Avg
2006
∆:
41%
Avg
2007
∆:
41%
Avg
Avg
2008 2009
∆:
∆:
23% 8%
Avg
2010
∆:
37%
Avg
2011
∆:
48%
Avg
2012
∆:
30%
Avg
2013
∆:
31%
Deposits - Loans / GDP1
Avg
2014
∆:
20%
Avg
2015
∆:
38%
Avg
30
2016
∆:
32%
55
40
22
25
(%)
(%)
15
10
12
14
(5)
(20)
(35)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Commercial
Source: BCRA/BMA
Note:
1- As of June 2016.
Consumer
Total
6
01
02
03
04
05
06
07
08
Private Sector Deposits
09
10
11
12
13
14
15
16
Private Sector Loans
10
Banking System
Market Share / Group of Banks1
Loans to the private sector
Deposits to the private sector
Macro
21%
Macro
22%
Private Banks
(local)
34%
Public Banks
32%
Private Banks
(local)
32%
Privte Banks
(foreign)
34%
Public Banks
35%
Private Banks
(foreign)
33%
Loans/Deposits evolution with the private sector (YoY)
Financial System2
50
47
46
42
40
37
37
32
( %)
30
29
28
30
31
37
32
31
28
26
20
10
20
20
20
7
9
0
Source: BCRA
Note:
1-As of March 2016. Excluding interests.
2007
2008
2009
2010
2011
Loans to Private Sector
2012
2013
Deposits from Private Sector
2014
2015
2Q16
11
Agenda
Macroeconomic Information
Page 05
Investment Highlights
Page 08
Financial Scenario
Page 10
BMA Business Overview
Page 13
BMA Financial Performance
Page 26
Appendix
Page 36
12
OUR GROWTH STORY
2016
2015
38 years of experience in the Argentine Financial System
2014
2013
2012
2011
2010
2009
Banco Privado de Inversiones
Merger Nuevo Banco Bisel
2008
2007
2006
2005
2004
Merger Nuevo Banco Suquía / International Capital Markets
Banco de Tucumán / NYSE IPO / Nuevo Banco Bisel
Banco Empresario de Tucumán
Nuevo Banco Suquía
2003
2002
Banco Bansud / 35% of Scotiabank Argentina
2001
1999
1998
1996
1994
1992
1989
1988
1985
1982
1981
1975
Branches of Banco Mayo, Almafuerte, Mendoza and Israelita
Banco Jujuy
Banco Salta / Banco del Noroeste / Banco Misiones
First Wholesale Bank to Issue Equity / First Branch in Salta / Strategic Decision to Move into Retail
First Wholesale Bank to Issue Debentures
Banco Macro Emerges as a Leading Wholesale Bank in Argentina
Commercial Bank License
Macro (Financial Company)
Anglia Opens Brokerage House
Initial Stages
Regional Bank
Wholesale Bank
National Bank
Anglia (Over the Counter Agent)
Hamburgo (Investment Manager)
Notes: 1- As of June 2016
Successful Business Model
“ Develop a sustainable business, making life easier for our customers.”
BMA Strategy
Focus on mantaining healthy
volumes
Shareholder value through
operational excellence and
market initiatives
Operational Efficiency
Risk Management
Opportunities
 Loans to private sector grew 37% in LTM.
 Total deposits grew 41% in LTM.
 Net Fees covering of 53.4% of operating expenses.
 Buying back equity and debt securities if applicable.
 Cost to Income ratio of 46.3%.
 Liquidity: liquid assets at 41% of total deposits.
 Asset quality: Coverage ratio at 150.5% of NPLs and NPLs ratio at
1.5%.
 Currency: net long USD position since 3Q08.
 Regulatory capital ratio:16.2%.
 Loans growth (organic and/or inorganic).
 Increase business in branches.
 Increase our market share in the credit card market.
15
Unique Branch Network
Largest private sector branch network in Argentina and exclusive financial agent in 4 provinces
Strongest presence outside Buenos Aires1
Nationwide Presence2
Branches
Macro
79%
14%
7%
439
Nacion
60%
Supervielle
48%
Patagonia
47%
Credicoop
29%
29%
35%
175
16%
27%
258
33%
39%
634
111
24%
40%
40%
Santander Rio
10%
23%
44%
HSBC
438 Branches throughout the country
1347 ATMs
898 TAS
60 Service points
8768 Employees
30%
139
26%
399
BBVA Frances
33%
34%
33%
252
ICBC
33%
36%
32%
104
Galicia
Provinces with Branches
29%
0%
Financial Agency Agreements
10%
42%
20%
30%
40%
Interior of Argentina
Financial Agency Agreements
50%
320
29%
60%
BA Province
70%
80%
90%
100%
BA City
Exclusive and Long Term Relationships with Provincial Governments
Provinces
Population
Branch
Market Share
Agreement
expires
Salta
1,2 m
50%
2026
Misiones
1,1 m
52%
2019
Jujuy
0,7 m
45%
2024
Tucumán
1,5 m
44%
2021
Provincial
Government’s
Bank
Large
Customer
Base
Cross Selling

+
Public
Employees
Payroll Accounts
Low - Cost
Funding
Employees and relatives
 Companies with
government contracts
 Companies operating in
regional economies
Fee Income
Source: BCRA / BMA
Notes:
1-As of March 2016. Bank´s with 100 branches or more. Galicia (only with Compañía Financiera Argentina), Patagonia & BBVA also consolidated.
2-As of June 2016.
16
Branch Network: Buenos Aires
Keep increasing our market share in Buenos Aires
Metropolitan Area
& Great Buenos
Aires1
Rest of Buenos
Aires Province1
Bank (total branches)
1 SANTANDER RIO
2 GALICIA
3 BBVA FRANCES
4 PROVINCIA DE BS AS
5 NACION
6 CREDICOOP
7 PATAGONIA
8 HSBC
9 ITAU
10 CIUDAD DE BS AS
11 ICBC
12 MACRO
13 SUPERVILLE
14 COMAFI
15 CITI
Others
Financial System
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Bank (total branches)
PROVINCIA DE BS AS
NACION
SANTANDER RIO
GALICIA
CREDICOOP
MACRO
BBVA FRANCES
PATAGONIA
HSBC
BANCO DE LA PAMPA
ICBC
INDUSTRIAL
COMAFI
COLUMBIA
HIPOTECARIO
SUPERVIELLE
BST
CITI
Others
Financial System
Source: BCRA
Notes:
1-As of March 2016. Galicia (only with Compañía Financiera Argentina), Patagonia & BBVA also consolidated.
Total
184
169
135
130
114
88
70
68
66
60
59
52
51
49
45
109
1449
Market Share
13%
12%
9%
9%
8%
6%
5%
5%
5%
4%
4%
4%
4%
3%
3%
8%
100%
Total Market Share
212
29%
138
19%
77
10%
58
8%
56
8%
41
6%
34
5%
22
3%
16
2%
13
2%
11
1%
10
1%
9
1%
8
1%
8
1%
7
1%
5
1%
5
1%
9
1%
739
100%
Total Loans & Deposits Breakdown
Loans (Ps.72,625 million)1
Deposits (Ps.90,939 million)1
Public
1%
Financial
1%
Public & Fin
11%
Private
98%
Privado
89%
Pub & Fin
3%
Pub & Fin
12%
Institutional
28%
Corporate
37%
Consumer
60%
Consumer
60%
Dollar
7%
Dollar
16%
Peso
93%
Source: BMA
Notes:
1-As of March 2016. Loans before Provisions. Interest included.
Peso
84%
18
Loans Portfolio – Banco Macro vs. System
Banco Macro (Ps. 69,800 millon)1
Overdrafts
11%
Others
10%
Documents
11%
Credit Cards
23%
Mortgage
Loans
5%
Pledge Loans
3%
Personal Loans
37%
System (Ps.889.878 millon)1
Others
6%
Overdrafts
11%
Credit Cards
24%
Documents
28%
Personal Loans
20%
Source: BMA/BCRA
Notas:
1-As of Juner 2016. Loans before Provisions. Interest excluded.
Pledged Loans
5%
Mortgage Loans
6%
19
Consumer Banking
Retail Customers1
Retail Portfolio1



3,2 million retail customer served
721,465 customers with personal loans
1,253,275 customers with credit cards
 low credit risk (payment through payroll deduction)
 average interest rate 44.20% (June Sale)
Pub & Fin
3%
Corporate
37%
Accounts by product
Private sector payroll plans
Public sector payroll plans
804,590
724,164
Retirees
730,913
Open Market
654,139
Total saving accounts
Checking accounts
Debit cards
Consumer
60%
2,913,806
674,949
2,636,984
Mortgages
1%

Significant cross-selling opportunities
 23% with personal loans
 40% with credit cards
Others3
4%
Ps. 41 billion
(US$ 2,8 billion)2
Credit Cards
35%
Personal
60%
Source: BMA
Notes:
1-As of June 2016. Customers excluding additionals. Open Market includes Prof. and bus.
2-Translated at the rate of Ps.14.92 per US$1.00.
3- Includes Retail documents and overdrafts
20
Personal Loans
Market
15%
26,000
MACRO
Personal Loans Growth
24,000
Share1
22,000
PROVINCIA
20,000
14%
(Million Ps.)
18,000
9%
7%
NACION
16,000
14,000
SANTANDER
12,000
GALICIA
10,000
5%
8,000
6,000
4,000
2,000
MACRO
PROVINCIA
NACION
SANTANDER
0
2007
GALICIA
2008
2009
2010
2011
2012
2013
2014
2015
Mar-16
Volume (Millon Ps.)
Maturity (months) & Average Loan (sales)
25,761
31,222
23,232
16,121
46
13,874
9,023
2007
2008
2009
2010
2011
Maturity
2012
2013
2014
2015
3,807
4,007
2007
2008
2009
5,802
2010
2011
2012
2013
2014
2015
2Q16
Average Loan (sales)
Personal Loans Breakdown2
Open
Market
7%
Public Payroll
Plan
46%
2Q16
3,208
10,827
Capital &
Bs.As.
11%
Retirees
25%
Private
Payroll Plan
22%
Source: BMA /BCRA
Note:
1-As of March 2016.
2-As of June 2016. Open market includes prof & bus. Capital & Bs As includes La Pampa.
Interior
89%
21
Credit Cards
Credit Cards Growth (in thousands)
GALICIA
7,000
Market Share
SANTANDER
6,000
18%
14%
5,000
BBVA
4,000
PROVINCIA
3,000
9%
8%
7%
MACRO
2,000
1,000
0
GALICIA
SANTANDER
FRANCES
MACRO
2007
PROVINCIA
2008
2009
2010
2011
2012
2013
2014
2015 Mar-16
Open accounts
(in Thousands)
Volume (Millon Ps.)
16,053
1,548
2007
2008
2009
2010
2011
2012
2013
2014
2015
2008
2009
2010
2011
2012
2013
2014
2015
2Q16
Credit Cards Breakdown2
Public
Payroll
15%
Private
Payroll
25%
2007
2Q16
Open Market
38%
Retirees
22%
Source: BMA/BCRA
Notes:
1-As of March 2016. Includes holdders and additionals (active and inactive).
2-As of June 2016. Only Banco Macro. Open market includes prof & bus. Capital & Bs As includes La Pampa.
22
Corporate Banking
Pub & Fin
3%
Corporate Customers1
Corporate
37%


Consumer
60%
Small businesses represent 99% of total corporate
clients
Strong relationships with large corporations
 Cross selling to employees, customers and
suppliers
Number of Clients
Corporate
746
1%
2,653
3%
Agro
14,824
19%
Small & Micro.
61,132
77%
Total
79,355
100%
Medium
Ps. 29 billion
(US$ 1,9 billion)4
Others2
28%
Corporate
Credit Cards
4%
Pledged
5%
Source BMA
Notes:
1-As of June 2016.
2-Mostly structured loans (medium and long term).
3-Factoring, check cashing advances and promissory notes.
4-Translated at the rate of Ps.14.92 per US$1.00.
Overdraft
28%
Documents3
25%
Mortgage
10%
23
Assets and Liabilities
Assets Breakdown
100
6
5
4
4
6
6
9
11
11
51
50
7
4
5
4
5
65
66
5
4
21
2012
4
3
4
3
4
5
4
7
58
59
54
55
14
15
19
22
21
18
18
14
2013
2014
2015
1Q16
2Q16
(%)
75
42
48
59
50
26
21
20
25
21
11
16
16
19
16
15
2007
2008
2009
2010
2011
20
0
Cash
Government and private securities
Loans
Other receivables from financial intermediation
Other assets
Liabilities Breakdown
100
11
10
12
14
14
80
81
80
81
80
2007
2008
2009
2010
2011
8
8
7
7
8
10
87
86
86
86
85
83
2012
2013
2014
2015
1Q16
2Q16
(%)
75
50
25
0
Deposits
Other liabilities from financial intermediation
Subordinated corporate bonds
Other liabilities
Non - subordinated Corporate Bonds
24
Agenda
Macroeconomic Information
Page 05
Investment Highlights
Page 08
Financial Scenario
Page 10
BMA Business Overview
Page 13
BMA Financial Performance
Page 26
Appendix
Page 36
25
BMA Results
Attractive profitability levels
1,967
2,000
1,805
1,800
1,600
1,408
(Million Ps.)
1,400
1,186
1,200
1,114
1,000
1,105
986
953
823
800
733
575
572
600
412 426
400
242 246
200
73
99 106
147
123 115
169 152 161 163
184
156 163
191
222
268 274 258 258
314
346
458 460
324 332
88
0
1Q06
2006A
Net Income:
Ps.424m
ROE: 22,2%
Payout Ratio:
24,2%
3Q06
1Q07
2007A
Net income:
Ps.495m
ROE: 20,2%
Payout Ratio:
34,5%
3Q07
1Q08
2008A
Net income:
Ps.660m
ROE: 23,8%
Payout Ratio:
22,7%
3Q08
1Q09
2009A
Net income:
Ps.752m
ROE: 24,6%
Payout Ratio:
27,7%
Source: BMA
Payout Ratio: Declared cash dividends as percentage of net income.
3Q09
1Q10
2010A
Net income:
Ps.1.010m
ROE: 27,1%
Payout Ratio:
50%
3Q10
1Q11
2011A
Net income:
Ps.1.176m
ROE: 26,7%
3Q11
1Q12
2012A
Net income:
Ps.1.494m
ROE: 27,1%
3Q12
1Q13
2013A
Net income:
Ps.2.443m
ROE: 28,3%
Payout Ratio:
24%
3Q13
1Q14
2014A
Net income:
Ps.3.479m
ROE: 28,3%
Payout Ratio:
7%
3Q14
1Q15
2015A
Net income:
Ps.5.008m
ROE: 37,2%
Payout Ratio:
13%
3Q15
1Q16
2016E
Net income:
Ps.3.213m
ROE: 33,3%
26
Superior and Consistent Performance
ROE Evolution1
ROA Evolution1
40
36.7
32.7
5.5
35
5
4
4.5
30
4
25
3.5
(%)
20
3
2.5
15
2
1.5
10
1
5
0.5
0
0
2007
2008
2009
2010
Macro
2011
2012
2013
2014
2015
2007
2Q16
2008
2009
Financial System
2011
Macro
NIM2 and Net Fee Income Ratio3
35
20
2012
2013
2014
2015
2Q16
Financial System
Efficiency Ratio4
22
70
70
18.8
18
12
10
8
25
24.7
6
4
Efficiency (%)
30
14
Fee Income Ratio (%)
60
16
NIM (%)
2010
60
50
46.3
53.4
40
50
30
Net Fee Inc. / Adm. Exp. (%)
(%)
5.7
6
2
0
20
2007
2008
2009
2010
2011
2012
2013
2014
NIM
Fee Income Ratio
Source: BMA/BCRA
Notes:
1- Accumulated Annualized Ratios.
2-Net interest margen / average interest earning assets (annualized).
3-Net fee income / Net fee income + Net financial income.
4-Administrative expenses / Net fee income + Net financial income.
2015
2Q16
20
40
2007
2008
2009
2010
Efficiency (%)
2011
2012
2013
2014
2015
2Q16
Net fee Inc./ Adm. Exp (%)
27
Organic , Inorganic and Fee Income Growth
Market Share Evolution1
70,000
Private Loan Portfolio Growth
65,000
13%
60,000
55,000
43%
50,000
13%
(Million Ps.)
45,000
40,000
25%
35,000
30,000
28%
25,000
52%
20,000
15,000
10,000
17%
3%
42%
5,000
0
2007
2008
2009
2010
2011
2012
Organic
2013
2014
2015
2Q16
Inorganic
Fee Income Growth
8,000
7,000
6,000
(Million Ps.)
5,000
4,000
3,000
2,000
1,000
Acquisitions: I- Bansud II- Suquia III- Tucuman IV- Bisel V- Banco Privado
Source: BMA/BCRA
Notes:
1-As of June 2016.
0
2007
2008
2009
2010
2011
2012
2013
2014
2015
Fee charges on deposit accounts
Debit and credit card income
Credit-related fees
Other
2Q16
28
Central Bank Notes Portfolio
Net position LEBACs-NOBACs/Assets
LEBAC-NOBAC Income/Net Financial Income
50
20
19
40
17
(%)
30
20
15
15
10
0
2Q07
2Q08
2Q09
2Q10
2Q11
2Q12
2Q13
2Q14
2Q15
2Q16
(%)
11
10
BCRA Instruments Stock
10
1
- Maturity
5,000
4,500
4,000
(Milliones de Ps.)
8
8
5
3,500
3,177
3,000
2,500
2,000
1,500
1,000
1
0
0
Jul-16
2008
2009
2010
2011
647
637
Sep-16
Oct-16
Nov-16
0
0
2007
610
500
2012
2013
2014
2015
Aug-16
2Q16
Source: BMA
Notes:
1- Stock as of 2Q16 net of Reverse Repos. Position without options includes “Holdings” plus: “spot and forward purchases pending settlement", less “deposits” and "spot and forward sales pending
29
settlement".
Asset Quality
NPLs as a % of Total Lending1
Banco Macro
5
Financial System1
5
4.5
2.6
3
(%)
(%)
1.5
3.2
1.5
2.1
1.5
1.8
3.1
3.2
3
3.5
1.9
1.5
2.1
1.5
1.4
1.7
2012
2013
2
1.9
1.7
0
0
2007
2008
2009
2010
2011
2012
2013
2014
2015
2007
2Q16
2008
2009
2010
2011
2014
2015
2Q16
Coverage Ratio
Financial System1
Banco Macro
180
3
180
3
160
151
1.5
1.8
(%)
(%)
(%)
140
2
2
139
140
1
1
120
(%)
160
120
100
0
2007
2008
2009
2010
2011
2012
2013
2014
2015
2Q16
100
0
2007
2008
2009
2010
2011
Allowances as a % of NPLs
Allowances as a % of NPLs
Source: BCRA/ BMA
Note:
1-Non- financial private sector as of June 2016.
2012
2013
2014
2015
2Q16
Uncollect. Charges/Avg. Loans
Uncollect. Charges/Avg. Loans
30
Solid Capitalization and Solvency
Exposure to the Public Sector1
 Lower exposure to Public Sector than the Banking Sector
(Public Sector Assets/Total Assets %)
24
18
12
9.2
4.9
6
0
2007
2008
2009
2010
2011
Banco Macro
2012
2013
2014
2015
2Q16
Financial System
Excess of Capital
9,000
40
7,000
30
6,000
22.5
20
5,000
4,000
16.2
3,000
10
2,000
Capitalization Ratio (%)
Excess of Capital (Million Ps.)
8,000
1,000
0
0
2007
Source: BCRA/ BMA
Notes:
1-Net of LEBACs and NOBACs as of June 2016.
2008
2009
Excess Capital
2010
2011
2012
Capitalization Ratio
2013
2014
2015
2Q16
Regulatory Capital BIII
31
Funding & Liquidity Management
Deposit Base
 Large share of demand deposits complemented by
low-cost deposits from provinces
92,000
Liquidity Management
84,000
80,000
76,000
45%
72,000
68,000
64,000
60,000
56,000
49% low-cost funding
88,000
(Million Ps.)
 Appropriate liquidity available to take advantage of
expected credit expansion
4%
(Million Ps.)
Cash + cash collateral + call
Repos
2Q15
2Q16
12,864.1
20,656.1
1,246.3
Central Bank Bill (Lebacs / Nobacs)
4,276.7
11,836.6
12,337.2
Liquid Assets
25,947.0
37,270.0
Liquid Assets / Deposits
40.2%
41.0%
52,000
48,000
44,000
40,000
36,000
51%
32,000
28,000
24,000
20,000
16,000
12,000
8,000
4,000
0
2007
2008
2009
2010
Time deposits
Source: BMA
2011
2012
Sight deposits
2013
2014
2015
2Q16
Other
32
Argentine Bank´s Rankings
Loans ( March 2016)
Value (Million Ps) Market Share
Equity (March 2016)
Value (Million Ps) Market Share
1
NACION
66,432
27%
2
MACRO
17,652
7%
3
SANTANDER RIO
17,005
7%
4
GALICIA
14,958
6%
5
BBVA FRANCES
14,881
6%
6
CITI
10,574
4%
4%
7
PROVINCIA DE BS AS
9,936
4%
35,425
4%
8
HSBC
8,681
4%
PATAGONIA (*)
32,850
4%
9
PATAGONIA
8,435
3%
ICBC
31,029
3%
10
ICBC
7,178
3%
Rest of the system
244,073
27%
Rest of the system
85,374
35%
Financial system
911,541
100%
Financial System
246,751
100%
Value (Million Ps)
Market Share
1
NACION
158,071
17%
2
PROVINCIA DE BS AS
84,699
9%
3
SANTANDER RIO
84,319
9%
4
GALICIA (*)
81,390
9%
5
MACRO (*)
62,148
7%
6
BBVA FRANCES (*)
59,715
7%
7
CIUDAD DE BS AS
37,823
8
HSBC
9
10
Assets (March 2016)
Deposits (March 2016)
Value (Million Ps)
Market Share
1
NACION
468,372
24%
1
NACION
331,006
24%
2
SANTANDER RIO
167,892
9%
2
PROVINCIA DE BS AS
145,162
10%
3
PROVINCIA DE BS AS
161,134
8%
3
SANTANDER RIO
123,488
9%
4
GALICIA (*)
160,614
8%
4
GALICIA (*)
108,198
8%
5
BBVA FRANCES (*)
116,208
6%
5
MACRO (*)
83,772
6%
6
MACRO (*)
115,698
6%
6
BBVA FRANCES
80,122
6%
7
HSBC
70,687
4%
7
CREDICOOP
57,401
4%
8
CREDICOOP
65,527
3%
8
CIUDAD DE BS AS
52,850
4%
9
CIUDAD DE BS AS
63,660
3%
9
HSBC
51,442
4%
10
CITI
61,484
3%
10
PATAGONIA
41,437
3%
Rest of the system
496,985
25%
Rest of the system
324,353
23%
Financial System
1,953,132
100%
Financial System
1,399,230
100%
Source: BCRA/BMA
Note (*): Galicia (only with Compañía Financiera Argentina), Patagonia & BBVA also consolidated and as of March 2016.
33
Ownership Structure1 | Debt & Equity
Information
Class A: 11,235,670
+
Class B: 573,327,358
Anses 31%
Major
Shareholders
39%
Others 7%
TOTAL: 584,563,028
ADS´s 23%
Float 30%
Amount (USD)
Original
Oustanding
Denomination
Maturity
Call Option
Coupon
Subordinated (Class 1)
150
150
2036
2016
Bullet
9.75%
Senior Note (Class 2)
150
106
2017
-
Bullet
8.50%
Quarter
Shares in Million
Average Price
Quarter
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
Total
1,44
13,6
32,4
28,6
13,58
1,01
90,64
6.93
6.25
5.69
3.62
3.74
3.84
4.83
1Q08
3Q09
4Q08
1Q09
2Q09
3Q09
Total
Source: BMA
Note:
1-As of June 2016.
2-As of March 2016.
VN (In Million)
Class 2
9,5
10,85
22,21
1,05
43,61
Ratings2
Moodys Fitch
Caa3
CCC/RR6
(hyb)
B3
B/RR4
Quarter
Shares in Million
Average Price
3Q11
1,3
9.69
4Q11
Total
8,7
10,0
9.39
9.29
34
Agenda
Macroeconomic Information
Page 05
Investment Highlights
Page 08
Financial Scenario
Page 10
BMA Business Overview
Page 13
BMA Financial Performance
Page 26
Appendix
Page 36
35
Financial Summary
Source: BMA
36
Financial Summary
Quarterly Income Statement
(Million Ps.)
Financial income
Financial expense
Net financial income
Provision for loan losses
Fee income
Fee expense
Net fee income
Administrative expenses
Minority interest in subsidiaries
Net other income
Earnings before income tax
Income tax
Net income
2Q15
3Q15
4Q15
1Q16
2Q16
4,178.9 5,020.7
6,341.1 6,419.2 7,530.6
-2,061.8 -2,276.9 -2,630.3 -3,153.9 -3,375.7
2,117.1 2,743.8
3,710.8 3,265.3 4,154.9
-217.3
-138.1
-320.0
-178.2
-298.5
1,457.9
1,576.0
1,772.9
1,737.9
1,862.8
-384.2
-466.1
-524.8
-575.8
-590.2
1,073.7 1,109.9
1,248.1 1,162.1 1,272.6
-1,739.3 -1,896.1
-2,003.7 -2,120.9 -2,437.0
-8.8
-9.1
-9.8
-10.6
-14.7
66.5
-25.7
7.7
52.3
100.2
1,291.9 1,784.7
2,633.1 2,170.0 2,777.5
-467.7
-680.1
-666.2
-762.4
-972.2
824.2 1,104.6
1,966.9 1,407.6 1,805.3
Accumulated Annualized Ratios
Profitability & performance
Net interest margin (1)
Net interest margin adjusted (2)
Net fee income ratio
Efficiency ratio
Net fee income as a percentage of adm expenses
Return on average assets
Return on average equity
Liquidity
Loans as a percentage of total deposits
Liquid assets as a percentage of total deposits
Capital
Total equity as a percentage of total assets
Capitalization as % of APRc
Regulatory capital as % of APR
Asset Quality
Allowances over total loans
Non-performing loans as a percentage of total loans
Allowances as a percentage of non-performing loans
Variation
Quarterly Annualy
17%
7%
27%
68%
7%
3%
80%
64%
96%
37%
28%
54%
10%
15%
39%
92%
19%
40%
67%
51%
28%
28%
115%
108%
28%
119%
2Q15
3Q15
4Q15
1Q16
2Q16
17.6%
16.1%
29.8%
48.5%
61.4%
4.9%
31.1%
17.3%
15.8%
29.4%
48.8%
60.4%
4.9%
31.5%
17.9%
15.6%
28.1%
46.1%
60.9%
5.8%
37.2%
16.7%
15.2%
26.2%
47.9%
54.8%
5.1%
33.4%
18.8%
15.3%
24.7%
46.3%
53.4%
5.7%
36.7%
81.4%
40.2%
83.0%
38.2%
83.4%
38.4%
76.0%
44.4%
79.9%
41.0%
14.5%
22.4%
15.4%
14.5%
21.8%
15.2%
15.1%
20.8%
14.6%
15.3%
23.5%
16.4%
14.7%
22.5%
16.2%
2.6%
2.4%
2.3%
1.9%
1.8%
1.5%
131.2% 129.9% 151.0%
2.4%
1.5%
151.5%
2.4%
1.5%
150.5%
Source: BMA
Note: (1) Net interest margin excluding difference in quote in foreign currency
(2) Net interest margin (excluding difference in quote in foreign currency) except income from government & private securities and guaranteed loans
37
Source: JP Morgan / Company filings as of 2Q16. Bancolombia as of 1Q16
Note: Santander stands for Santander Brasil and Bancolombia for Grupo Bancolombia.
2%
2%
2%
2%
1%
Itau-UBB
B. de Chile
Bradesco
GF Banorte
Santander
13%
14%
GF Galicia
B. de Chile
15%
18%
Bancolombia
GF Banorte
18%
Bradesco
ROAA
16%
18%
Santander
111%
103%
97%
Credicorp
GF Galicia
Itau-UBB
155%
Macro
119%
165%
Bancolombia
GF Banorte
174%
Santander
189%
B. de Chile
65%
6%
GF Galicia
GF Galicia
2%
2%
B. de Chile
Credicorp
1%
2%
Bancolombia
GF Banorte
2%
3%
Itau-UBB
Santander
3%
Bradesco
4%
54%
GF Banorte
Macro
52%
47%
Bancolombia
Itau-UBB
46%
44%
B. de Chile
Macro
41%
39%
Credicorp
Bradesco
39%
Santander
4%
GF Banorte
6%
Santander
4%
6%
Bradesco
B. de Chile
6%
Itau-UBB
5%
6%
Bancolombia
13%
10%
Credicorp
GF Galicia
Macro
Operating
Efficiency Ratio
Credicorp
18%
223%
1%
B. de Chile
Bradesco
2%
3%
Bancolombia
Macro
3%
Santander
2%
3%
GF Galicia
GF Banorte
4%
5%
Credicorp
Bradesco
PDLs/Gross Loans
Itau-UBB
23%
ROAE
Macro
2%
Bancolombia
80%
Macro
6%
90%
Santander
Itaú-UBB
95%
GF Banorte
Gross Loans/Deposits
2%
3%
6%
96%
131%
Bancolombia
GF Galicia
136%
B. de Chile
109%
161%
Itau-UBB
Credicorp
173%
Bradesco
Leverage / asset quality
Net Interest Margin
Credicorp
GF Galicia
Macro
8%
13%
Bancolombia
Santander
14%
19%
Bradesco
GF Banorte
21%
23%
Itau-UBB
B. de Chile
24%
38%
GF Galicia
Credicorp
40%
Macro
Profitability/ capitalization
Largest listed Latam banks benchmark
Fee Income/ATA
Loss Reserves/PDLs
Total Capital Ratio
38